NYSE-Listed Companies Must Now Wait to Issue Material News after Market Close

12.14.17

Companies whose stock is listed for trading on the NYSE are now prohibited from issuing material news after the official closing time for the NYSE’s trading session until the earlier of 4:05 p.m. Eastern Time or the publication of the official closing price of the listed company’s stock. This restriction, however, does not apply when a company is releasing material news after an unintentional selective disclosure in compliance with Regulation FD. Despite this newly imposed prohibition, the NYSE continues to recommend that listed companies not issue material news until 15 minutes after the scheduled closing time on the NYSE.

The new prohibition is being implemented to alleviate confusion caused by price discrepancies between the NYSE closing price and trading prices on other markets after the NYSE official closing time and before the NYSE closing auction is completed, which can be after 4:00 p.m. Eastern Time.